KLX Energy Services Holdings, Inc. Closes on New $232 Million Senior Secured Notes and $125 Million ABL Credit Facility

Vinson & Elkins advised KLX Energy Services in the Refinancing to issue and sell to certain holders (the “Investors”) of its existing 11.500% senior secured notes due 2025 (the “Existing Notes”) (a) approximately $232 million in aggregate principal amount of Senior Secured Floating Rate Cash / PIK Notes due 2030 and (b) warrants entitling the holders thereof to purchase, in the aggregate, up to 2,373,187 shares of the Company’s common stock, par value $0.01 per share, at an exercise price of $0.01 per share, subject to adjustment in exchange for (i) approximately $78 million in aggregate cash consideration and (ii) approximately $144 million aggregate principal amount of Existing Notes, which were cancelled by the Company upon receipt thereof. The Refinancing also included the Company’s entry into a $125 million asset-based revolving credit facility and closed on March 12, 2025. The Company used the net cash proceeds from the Refinancing, together with cash on hand, to redeem the remaining Existing Notes.

The Vinson & Elkins corporate team was led by partners Sarah Morgan, Katherine Frank, Ben Heriaud, Darin Schultz, and Christopher Dawe, with assistance from senior associate Chandler Jones and associates Chase Browndorf, Natalie Harrison, Patience Li, James Payne, Tyler Wagner, Jose Becerra, and Matt Dubose.